China's stock exchanges are to adjust margin requirements so the margin ratio does not fall below 100% (prev. 80%), effective January 19th

• The adjustment applies only to new margin contracts. Existing positions and their extensions are exempt and will continue to be governed by the previous regulations.

China's move to adjust margin requirements to ensure that the ratio does not fall below 100% may aim to bolster market stability amidst volatility. By applying this only to new margin contracts and exempting existing positions, regulators could be trying to manage risk without unduly disrupting ongoing market dynamics. Traders should consider potential implications for liquidity and investor sentiment in Asian equities.